Business in Indonesia and Some Challenges to Overcome

business indonesia

Vast population is the main factor for many business entities to see Indonesia as potential and emerging market. Indonesia has been major attraction from foreign companies to open their representative, agent, and branch. However, few things become challenges that need to overcome in order to open and have reliable business in Indonesia. They are from small issue until the big things that only professional and expert can handle.

Indonesia started to expand economic area since several years ago after big turn in crisis. With new government, economic growth becomes stable and more investors have interest to put money in some area. The key challenges are infrastructure and human resources. Both are the reason why business is still stagnant in spite of excessive investment. Most of infrastructure such as railway, power grid, and road are still not reliable. In big scale business, they will disturb distribution chain. The price at consumer level is high because of inefficient shipping and transportation cost.

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The next issue is human resource to fulfill business in Indonesia. The company needs employees with eligible skill and knowledge. In general, Indonesia is not underdeveloped country where there is no decent worker. However, companies and corporations have their standard that need to put ultimately in order to gain the top grade products. They use machine, tool, and technology where no one can operate or understand without proper training. To fill such particular position, company hires foreign employees.

Another issue appears when company tries to get expert from foreigner. There is regulation related to employment and work in this area. Foreign workers requires permit for working and staying in Indonesia. This is where Permitindo comes as the top solution. Instead spending unnecessary effort for handle permit, the company should rely on experience service like Permitindo to support the business in Indonesia.

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Pub: 18 Oct 2018 14:07 UTC
Views: 234